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Finance

2018 full-year results in line with the communication of November 2018

Feb 14, 2019

Sales at current metal prices at 6.490 billion euros. Sales at constant metal prices[1] stable at 4.409 billion euros[2]. for 2018. Organic growth negative (-0.8%)[3] for the Group as a whole but positive (+4.2%) for the cable and wire activities[4].

EBITDA[5]of 325 million euros (compared with 411 million euros in 2017), corresponding to operating margin of 188 million euros (272 million euros in 2017).

Attributable net income of 14 million euros versus 125 million euros in 2017, taking into account 53 million euros in restructuring costs and non recurring real estate capital gains that were offset by asset impairment losses for an equivalent amount.

Operational cash flow of 153 million euros, compared with 277 million euros in 2017, mainly reflecting the decline in EBITDA. On the opposite, 149 million euro positive impact from the improvement in operating working capital.

Consolidated net debt of 330 million euros, similar to December 31, 2017.

Backlog for projects exceeds 1.25 billion euros as of December 31, 2018.

Liquidity and long-term funding strengthened with a five-year bond issue of 325 million euros in August 2018 and the extension of the 600 million euro Revolving Credit Facility until 2023. Redemption of the convertible bonds that matured on January 2, 2019 for 275 million euros.

Recommended dividend of 0.30 euro per share.

“New Nexans” plan launched on schedule in November 2018

New executive committee in place.

All initiatives under the plan now launched and implementation of the supervisory bodies.

European restructuring project presented to employee representative bodies on January 24, 2019.

“ At 325 million euros, the Group’s 2018 EBITDA performance is in line with the guidance issued in November, reflecting a difficult year despite a gradual improvement in the second half. Net debt has been contained at 330 million euros, thanks in particular to the receipt of significant advance payments following a large number of orders placed in the project-based businesses late in the year. After having defined our strategic plan, we launched far-reaching changes that are essential for the roll-out of the New Nexans. Starting with the implementation of our new executive committee in December, Nexans is pursuing its ongoing transformation with a focus on delivering growth in selected markets, increasing return on capital employed and improving cash generation. Further measures were announced in January 2019 concerning a reorganization and restructuring plan in Europe. The three initiatives presented in November 2018 – cost-cutting, operational transformation and growth leverage – have therefore been launched. For these reasons, we are beginning 2019 with confidence that these measures will start delivering results before the year is out, resulting in a sharp increase in EBITDA. ”

Christopher Guérin

Chief Executive Officer

2018 Full-Year presentation

Watch the présentation of the 2018 Full-Year results to analysts, recorded in Paris, February 14, 2019.

footnotes

[1] To neutralize the effect of fluctuations in non-ferrous metal prices and therefore measure the underlying sales trend, Nexans also calculates its sales using constant prices for copper and aluminum.

[2] The 2018 sales figure used for like-for-like comparisons corresponds to sales at constant non-ferrous metal prices, adjusted for the effects of exchange rates and changes in the scope of consolidation. Exchange rates and changes in the scope of consolidation impacted sales at constant non-ferrous metal prices by a negative -129 million euros and a positive 2 million euros respectively.

[3] Organic growth is defined as the difference between (i) standard sales for the current period of the current year (year Y) calculated at constant non-ferrous metal prices, and (ii) standard sales for the same period of the previous year (year Y-1), calculated at constant non-ferrous metal prices and applying the exchange rates prevailing in year Y and based on the year Y scope of consolidation.

[4] The cable and wire activities include all the businesses except High voltage & projects.

[5] Consolidated EBITDA is defined as operating margin before depreciation and amortization.